May 17, 2020

Angola LNG sells first cargo of LPG

Admin
2 min
Angola LNG sells first LPG cargo
[email protected] Make sure to check out the latest issue of Energy Digital magazine The Angola LNG recently announced the sale of its first shipmen...

Make sure to check out the latest issue of Energy Digital magazine 

The Angola LNG recently announced the sale of its first shipment of LPG from the ferry terminal at its plant in Soyo, which was built with the aim of creating value from existing natural gas resources in offshore Angola.

The first shipment was sold free on board (FOB) to Sonangol, which is the state-owned Angolan oil and gas, and it was shipped via tanker BW Broker. The advantage of the sale of LPG, propane and butane, and condensates, reverts to the shareholder consortium Angola LNG.     

The company Angola LNG Ltd. will collect, process and sell approximately 5.2 million tons of LNG per year, in addition to propane, butane and condensate, from its manufacturing facilities in Soyo, northern Angola , one of factory LNG processing in modern world.

Angola is the second largest oil producer in sub-Saharan Africa. Historically, the associated gas has been flared or re-injected into reservoirs of crude oil, constituting the Angola LNG project a solution so carbon emissions are reduced and will create a new source of clean energy.

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The Angola LNG itself is one of the largest investments ($10 billion) ever undertaken in the Angolan oil and gas industry.

In addition to the infrastructure for the production and shipment of natural gas in manufacturing plants in Soyo, Angola LNG has storage tanks with a capacity of 88,000 m3 of propane, butane and 59,000 m3 of 108,000 m3 of condensate. They have a marine terminal dedicated to shipping such products and a second terminal for loading pressurized butane which will supply the domestic market.

The Angola LNG Limited is a joint venture between Sonangol, Chevron, BP, Total and ENI for utilization of gas associated with oil production, which, after processing, are extracted for marketing natural gas (LNG) and natural gas liquids (NGL ). Its expected lifetime is 30 years.

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Jul 26, 2021

Ofwat allows retailers to raise prices from April

Ofwat
Utilities
water
prices
Dominic Ellis
3 min
Ofwat confirms levels of bad debt costs across the business retail market are exceeding 2% of non-household revenue

Retailers can recover a portion of excess bad debt by temporarily increasing prices from April 2022, according to an Ofwat statement.

The regulator confirmed its view that levels of bad debt costs across the business retail market are exceeding 2% of non-household revenue, thereby allowing "a temporary increase" in the maximum prices. Adjustments to price caps will apply for a minimum of two years to reduce the step changes in price that customers might experience.

Measures introduced since March 2020 to contain the spread of Covid-19 could lead to retailers facing higher levels of customer bad debt. Retailers’ abilities to respond to this are expected to be constrained by Ofwat strengthening protections for non-household customers during Covid-19 and the presence of price caps.  

In April last year, Ofwat committed to provide additional regulatory protection if bad debt costs across the market exceeded 2% of non-household revenue. 

Georgina Mills, Business Retail Market Director at Ofwat said: “These decisions aim to protect the interests of non-household customers in the short and longer term, including from the risk of systemic Retailer failure as the business retail market continues to feel the impacts of COVID-19. By implementing market-wide adjustments to price caps, we aim to minimise any additional costs for customers in the shorter term by promoting efficiency and supporting competition.”  

There are also three areas where Ofwat has not reached definitive conclusions and is seeking further evidence and views from stakeholders:   

  1. Pooling excess bad debt costs – Ofwat proposes that the recovery of excess bad debt costs is pooled across all non-household customers, via a uniform uplift to price caps. 
  2. Keeping open the option of not pursuing a true up – For example if outturn bad debt costs are not materially higher than the 2% threshold. 
  3. Undertaking the true up – If a 'true up' is required, Ofwat has set out how it expects this to work in practice. 

Further consultation on the proposed adjustments to REC price caps can be expected by December.

Anita Dougall, CEO and Founding Partner at Sagacity, said Ofwat’s decision comes hot on the heels of Ofgem’s price cap rise in April.

"While it’s great that regulators are helping the industry deal with bad debt in the wake of the pandemic, raising prices only treats the symptoms. Instead, water companies should head upstream, using customer data to identify and rectify the causes of bad debt, stop it at source and help prevent it from occurring in the first place," she said.

"While recouping costs is a must, water companies shouldn’t just rely on the regulator. Data can help companies segment customers, identify and assist customers that are struggling financially, avoiding penalising the entire customer in tackling the cause of the issue."

United Utilities picks up pipeline award

A race-against-time plumbing job to connect four huge water pipes into the large Haweswater Aqueduct in Cumbria saw United Utilities awarded Utility Project of the Year by Pipeline Industries Guild.

The Hallbank project, near Kendal, was completed within a tight eight-day deadline, in a storm and during the second COVID lockdown last November – and with three hours to spare. Principal construction manager John Dawson said the project helped boost the resilience of water supplies across the North West.

“I think what made us stand out was the scale, the use of future technology and the fact that we were really just one team, working collaboratively for a common goal," he said.

Camus Energy secures $16m funding

Camus Energy, which provides advanced grid management technology, has secured $16 million in a Series A round, led by Park West Asset Management and joined by Congruent VenturesWave Capital and other investors, including an investor-owned utility. Camus will leverage the operating capital to expand its grid management software platform to meet growing demand from utilities across North America.

As local utilities look to save money and increase their use of clean energy by tapping into low-cost and low-carbon local resources, Camus' grid management platform provides connectivity between the utility's operations team, its grid-connected equipment and customer devices.

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